A 4-day work week could help older workers transition into retirement
As the notion of a four-day work week gains traction, the benefits for working parents and those suffering from burnout have been touted. It’s also touted as a way to attract younger talent.
But there’s another group who would particularly benefit from the shortened workweek, says one financial adviser: people who are nearing or in retirement.
“The four-day work week can keep people in the workplace a little longer,” says Jody D’Agostini, a certified financial planner at Equitable Advisors. “If you spend all weekend doing your chores, you don’t have a day to have fun and catch up on your health.”
But a three-day weekend could make it easier for older workers to stay rested and in the game, she says, and manageably extend the working lives of near-retirees.
Many people naturally slow down as they age, but do not have the financial means to retire. Switching to a four-day work week could help them save more for their retirement, hold on to their health insurance until they can enroll in Medicare, push back when they start Social Security (resulting in higher monthly payments), and their to pursue work they love until they are ready to retire completely.
A recent study shows the benefits of a four-day week. In the second half of 2022, 61 UK companies took part in a four-day workweek pilot scheme. The researchers found that it helped reduce employee burnout and stress, and the number of sick days and work-related days fell by 65%. At the same time, productivity did not fall.
Studies conducted in other countries, including the US, found similar results. A four-day work week, proponents say, could be a solution to the growing problem of employee burnout in the US. There is a growing number of state governments introducing legislation to test the shortened workweeks.
A 4-day work week would ease the transition into retirement for older workers
For older workers, the flexible arrangements are a perfect de-escalation of their working life and help them with the transition from working life. Many older workers are now taking part-time jobs or reducing their hours; A four-day workweek could allow even more of them to reduce their workload — and their stress levels.
“The four-day work week also has the potential to reduce burnout,” says D’Agostini. “If near-retirees are happier at work, they may be more inclined to stay in the workforce longer because of the purpose, social connections, and job satisfaction that employment can provide.”
Companies could also benefit. Not only were employees more productive during a four-day workweek, but companies may have been able to retain the most experienced employees longer. These employees, in turn, bring institutional knowledge and can mentor their younger, less experienced colleagues.
But it’s not just about workplace productivity, she says. Three days off per week gives retirees nearing retirement plenty of time to start things they might be saving for full retirement, such as: Your overall quality of life could improve.
Even near-retirees could reap the health benefits of working less: time to exercise more, spend more time in nature, and generally get away from the hustle and bustle of American business, D’Agostini says, without those Time to lose income and health insurance.
“You can spend more time with family and friends when you don’t have to spend your extra time outside of work on chores and household chores,” she says.
As companies continue to negotiate what work will look like in 2023, it’s worth pondering, says D’Agostini.
“That’s the only benefit COVID has shown us,” she says. “We can work differently and still be successful.”
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